Digital divide in the use of payment services – Compulsory cash annoys many

New app-based payment services are still used less than traditional methods such as cash, debit cards, credit cards or bank transfers. However, they are already quite widespread. This is according to the Weizenbaum Report 2025 published on Tuesday, for which researchers for the first time surveyed financial participation issues in a representative sample of the German-speaking population aged 16 and over.

86 percent of participants stated that they had used a debit card such as a Girocard to pay in a store in the past 12 months. 73 percent have made bank transfers via online banking and 63 percent have paid with a credit card in a store or online.

According to the report by the Berlin-based Weizenbaum Institute, the use of the online payment service PayPal is almost on a par with credit cards at 62% and well ahead of instant transfers and SEPA payments. Such services with access to the current account are used by 56 percent of German citizens.

Apple Pay, Google Pay and Samsung Pay are still among the least used payment services. Only 21% stated that they had used them to settle a debt in 2024. At 39%, 16 to 34-year-olds use these smartphone-based services the most, compared to just 10% of over 64-year-olds.

There is a large disparity in the use of payment services between different income groups. In relative terms, the digital divide is greatest for apps from Apple, Google and Samsung: Only 13 percent of people on low incomes say they use these services. In contrast, 38% of high-income earners pull out their cell phones at the checkout. In addition, 92 percent of high earners use online banking for bank transfers, but only 56 percent of people on low incomes.

Debt risk due to "buy now, pay later"

The situation is similar for credit card payments. These are made by 84 percent of respondents with a high income, but only 42 percent with a low income. There are also differences between the sexes: women use online banking (67 vs. 77 percent), credit cards (57 vs. 68 percent) and PayPal (56 vs. 67 percent) significantly less often than men. In contrast, there are hardly any differences when it comes to giro cards and other debit cards.

According to the findings, the risk of over-indebtedness through the use of digital payment services such as Klarna & other "buy now, pay later" offers (BNPL) is also increasing, particularly among younger and lower-income groups. According to a recent Schufa survey, one in three users of such small loans has already missed the payment deadline. Among 18 to 39-year-olds, the proportion of respondents with late payments for BNPL purchases is significantly higher than among older people at around 47.5%.

"Genuine freedom of choice" vs. transparent customers

Meanwhile, the planned black-red coalition in the federal government is campaigning for at least one digital payment option to be offered in addition to cash in everyday stores. Half of German citizens think this is a good thing, according to a representative survey conducted by the Allensbach Institute for Public Opinion Research on behalf of the Initiative Deutsche Zahlungssysteme (IDZ). According to the survey, there is still room for improvement when it comes to the choice of payment options in retail and gastronomy.

According to the Allensbach study, just under one in three people in Germany (31%) are annoyed when sales outlets only accept cash. Among 16 to 29-year-olds, 37 percent even go so far as to reject "cash only" stores. 76% of citizens name the Girocard issued by the IDZ as the payment method they are most likely to use in five years' time – Cash follows at a clear distance (53%). Mobile payment is gaining ground, particularly among young consumers: When asked about the payment method of tomorrow, 70 percent of this group named the digital girocard in their smartphone or on their smartwatch.

IDZ CEO Ingo Limburg therefore praises the future German government's signal to give consumers "real freedom of choice when paying and thus finally drive digitalization within the payment infrastructure." Anyone who pays by card or smartphone app leaves behind comprehensive, easily analyzable data traces. Ramona Pop, Director of the Federation of German Consumer Organizations (vzbv), therefore took up the cudgels in 2023 for the preservation of cash despite digitalization.

(vbr)